1911
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Kong) Limited for the operation of this service. It would be for consideration whether the special staff for the programme and propaganda side of the scheme should be directly employed by His Majesty's Government, or whether they should be incorporated in the staff of the local Relay Company. If this proved an insuperable difficulty, His Majesty's Government might prefer the Government of Hong Kong to continue their present broadcasting service which they would be prepared to do provided that they received a grant towards the capital cost of the new studios amounting to the difference between the original estimate of $150,000 and the final capital cost, but in any case not exceeding $250,000. A contribution towards the rental in proportion to the floor space occupied by the staff of the new China broadcasting service would also appear to be equitable.
6.
7
I should welcome an early expression of your views on these proposals as work on the new Electra House is progressing fairly rapidly and it will be necessary to reach a decision within the next two or three months. On balance, I favour the
· transfer of the whole of the Government broadcasting activities to the Broadcast Relay Service (Hong Kong) Limited and I trust that there will be no objection to the broadcast to China organised by His Majesty's Government being operated by this Company. A separate savingram is being addressed to you regarding the technical details of the latter scheme.
CGSF:omr
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CONFIDENTIAL